It is said "Nothing is new under the sun". I wonder why, then, Many will read the history of this manipulation of gold price (high side) and dispute that it could be done, in the inverse, today? Please note that the end result was the depression of 1869, we can only hope this manipulation is unwound without the same result.:
Fisk, James (1834-1872), American financier. Fisk was born in Bennington, Vermont. In 1866 he and American financier Daniel Drew founded the brokerage house of Fisk and Belden in New York City. Fisk participated in the operation carried out by Drew and the Jay Gould interests to deprive American industrialist Cornelius Vanderbilt of his holdings in the Erie Railroad. Fisk and Gould carried out various financial and speculative operations that involved the bribery of government officials on city, state, and national levels. Their projects culminated in the so-called gold conspiracy of 1868 and 1869, in which their success in driving up the price of gold resulted in the famous Black Friday of September 24, 1869, and caused a countrywide depression.
encarta.msn.com
Black Friday, short-lived financial crisis in the United States, that occurred on Friday, September 24, 1869. Financial speculators James Fisk and Jay Gould purchased enough gold in New York City to rapidly bid up the price, throwing the stock exchange into confusion. The panic was halted late in the day, when the federal government made some of its gold reserves available for trading. Fisk and Gould made a large profit by their manipulations, but many businesspeople claimed to have been ruined by the crisis.
Should our government move into the market and lease a large volume of gold so as to break the short side manipulators? The precedent has been set! |
